We are now looking straight into the face of a great depression

Simon Johnson, former chief economist at the International Monetary Fund, said that “we are now looking straight into the face of a great depression”.

Greece faces the threat of bankruptcy within weeks after the EU said Wednesday night it would not provide any more funding to the beleaguered country unless it agreed to support the euro bail-out.

The Greek government is expected to be unable to pay wages for state workers and pensions next month without a planned injection of pounds 8?billion of EU cash.

George Papandreou, the Greek prime minister, met his French and German counterparts ahead of today’s G20 summit of world leaders.

Mr Papandreou has called a referendum on whether the Greek public supports the bail-out. The decision has plunged the rescue into turmoil.

David Cameron said that the world was facing a “financial storm” as Greece may now be forced out of the single currency.

Simon Johnson, former chief economist at the International Monetary Fund, said that “we are now looking straight into the face of a great depression”. Source (1) The Telegraph

Well, imagine that. There’s a recession and nobody knew aside from the unemployed, the newly unemployed, the world stock markets, the major jump in everything from soup to gold with more jumps on the way.

Everyone is announcing increases to something, somewhere but it has nothing to do with blue collar workers or their wages. Does anyone stop and consider that these increases and idiotic spending sprees have to come to an end as the Great Wall of Non Sustainability is fast approaching. This isn’t a guess, it’s coming a lot faster than our political boy wonders have assumed but yet they continue to throw money around without so much as a care as to who is going to pay the bill when it comes due. Interest rates are held ridiculously low; want to know why ?